Observations on the market action and the implications of the gold and silver markets.

Sunday, May 17, 2009

Gold the Protector

The gold price is going way, way higher. The amount of new debt the US government is taking on is skyrocketing. Remember, the US government is broke. To increase spending, guarantees and other promises, it has to ***borrow*** dollars. For that to happen, the Fed has to create them out of thin air. There is too much debt in the system now. The government's borrowing to spend is just going to increase the problem and make the problem last far longer than it has to.

Besides, economy "stimulation" by the government is just a scam. They are in the process of creating so many dollars that they will be worth far less than they are now, far far less.

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William Black, law and economics professor at the University of Missouri and a former U.S. bank regulator:

If you want to hear more of what he has to say, there is a 3 part interview by Bill Moyers on youtube.com. Here is the link.

The US made world wealth and standard of living history back when government was tiny. That's all over now, same for the US dollar. The country is choking on government and debt; and too many people are still playing pretend. It's time to get back to plain 'ol basics like gold and silver. It is not too late.

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Wealth is economic goods and services people are willing to pay for. The more wealth a person has or a group of people have, the higher the standard of living they have.

Wealth is not money, currency or government fiat tokens. Gold would not have been of value to Robinson Crusoe when he landed on the island.

However, money, currency and government fiat tokens can be stores of value.

Value can be converted into capital.

Capital is the means of production.

Capital can only come from savings. Before there is capital, there has to be savings.

Capital plus the use of human minds and hands create wealth.

There is no theoretical limit to the creation of wealth.

Statist governments screw up this process time and time again. Sometimes they hurt the process particularly badly which is what is going on in the US right now. They do that because governments are not wealth creators. They are wealth consumers.

No wealth can be created simply by borrowing to consume. When you borrow and force others to pay your debt, you will be decreasing the standard of living of those you are forcing to pay for your debt. Today the government has most of those who bother to vote conned into believing that day is night, noon is midnight, black is white. This ignorance and mental lazyness of most of those that bother to vote is going to result in a huge decrease in their wealth, standard of living. Most do not know this, let alone know what to do to protect themselves from what is coming; maybe the biggest heist/theft/robbery of wealth in modern history if not in all history.

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Alf Field made his last wave analysis 25 November 2008 at:ELLIOTT WAVE GOLD UPDATE 23...Major ONE up from $256 to $1,015 (actually 4 times the $255 low);Major TWO down from $1015 to $699, say $700 (a decline of 31%);Major THREE up from $700 to $3,500 (a Fibonacci 5 times the $500 low);Major FOUR down from $3,500 to $2,500 (a 29% decline);Major FIVE up from $2,500 to $10,000 (also a 4 fold increase, same as ONE)...